BOUSTEAD Heavy Industries Corp Bhd (BHIC) has revealed that the planned disposal of its 20.77% stake in the troubled Boustead Naval Shipyard Sdn Bhd (BNS) to the Ministry of Finance (Inc) is encountering a further extension.

This extension, now stretching until December 1, has been deemed necessary due to the need for additional time to fulfill the prerequisites associated with the RM1 deal.

The decision to extend the timeframe was a mutual agreement reached by the parties involved, recently granting an additional 21 days to meet the conditions precedent, effective from November 1.

The initial intent behind this disposal was a significant step in the government’s plan to assume full control of the RM9.13 billion littoral combat ship (LCS) project, which BNS had previously failed to deliver on time.

The conditions precedent for this disposal include executing a conditional intercompany trade receivables reorganisation agreement, securing written consent from BNS’ lenders and BHIC’s financiers or creditors, as well as successfully completing due diligence reviews and associated remedial actions to the satisfaction of MOF. – TMR